Wisconsin Central and Canadian National eras
On February 1, 1995, Wisconsin Central Ltd. purchased Algoma Central Railway Incorporated, operating the railway as a separate subsidiary, Wisconsin Central Canada Holdings. In 1998, Algoma Steel closed its iron ore mine in Wawa and the branch line between Michipicoten Harbour and Hawk Junction was abandoned.[2] Wisconsin Central Ltd. was acquired by Canadian National on October 9, 2001, whereupon the Algoma Central became part of CN's Eastern Division.
In January 2014, CN announced it was cutting the service from Sault Ste. Marie to Hearst, blaming the Canadian federal government for cutting a subsidy necessary to keep the service running. The passenger service, which runs three days per week, provides year-round access to remote tourist camps and resorts. The average annual ridership is estimated to be 10,600 passengers. It has been argued in the past as an essential service; however, the service has always been deemed financially uneconomic.[4]
In February, a working group attempting to save the line hired BDO Canada LLP, an accounting firm, to assess the financial impact to the region when the service is scheduled to end April 29. The working group, composed of municipalities, first nations, and cottager associations, all had a vested interest in the continuation of the service.[5] According to preliminary findings, BDO determined passenger rail service in the Algoma district generates between $38 million and $48 million in annual economic activity. It supports as many as 220 jobs and delivers more than $5 million in tax revenues.[6]
In April 2014, the federal government extended funding for one year so that CN would continue to provide the passenger service. The $2.2-million subsidy was to facilitate the provision of service until 2015.[7] In March 2015, Railmark Canada Ltd assumed the passenger service with the intention to increase services and marketing.[8]
In March 2015, the Canadian government guaranteed funding of the service for an additional three years.[9]
In June of the same year, Canadian National said it would stop the service on July 15 after it was unable to make a deal with Railmark Canada. The government subsidy still stood, but a new rail operator needed to be sought by the regional stakeholders group. Railmark was unable to secure a line of credit from a lending group, which hindered its ability to take over services.[10]
In 2017, the Missanabie Cree First Nation started investigating taking operational control of the line.[11]
Canadian National announced its intent in July 2020 to sell off non-core lines in the Upper Midwest as part of a rationalization programme, all of which were previously part of the Wisconsin Central system.[12] In December 2021, the sale of the former Algoma Central lines along with CN trackage in Wisconsin and Michigan was approved by the Surface Transportation Board.[13]
